Bajaj Auto announces a tie-up with Triumph of UK: Angel Broking

Bajaj Auto announces a tie-up with Triumph of UK: Angel BrokingViews of Mr. Shrikant Akolkar (Research Analyst - Automobiles, Angel Broking):

"Bajaj Auto announced a deal with Triumph Motorcycles of UK to jointly manufacture mid-capacity motorcycles for the Indian and global markets. The partnership will be a non-equity tie-up to leverage Bajaj's low-cost expertise to create a value proposition in the 400CC-800C segment. There is a growing demand for leisure bikes in India and this tie-up with Triumph is a step towards addressing that need. The idea is to combine Triumph's global brand image and Bajaj's low-cost manufacturing prowess. Triumph bikes globally start from 675CC and this tie-up will give them an opportunity to scale down the capacity curve.

For Bajaj Auto, this is an important step in search of an exciting two-wheeler story in India. Bajaj, currently, exports 50% of its production but in the domestic market it has fallen to fourth position. This erstwhile leader in two-wheelers is now ranked behind Hero Moto, Honda and TVS Motors in the domestic market. Currently, Bajaj already has a tie-up with KTM of Austria and Husqvarna (also of Austria). In the new set-up, Bajaj bikes will cater to the entry segment, KTM and Husqvarna to the mid-segment and Triumph to the premium segment."

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.2794.8 as compared to the previous close of Rs. 2833.05. The total number of shares traded during the day was 157962 in over 2140 trades.

The stock hit an intraday high of Rs. 2835 and intraday low of 2761.85. The net turnover during the day was Rs. 442186893.

Source : Equity Bulls

Keywords